Hamilton Insurance Group (NYSE:HG – Get Free Report) and CNA Financial (NYSE:CNA – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Hamilton Insurance Group and CNA Financial, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Hamilton Insurance Group | 0 | 1 | 4 | 0 | 2.80 |
CNA Financial | 1 | 1 | 0 | 0 | 1.50 |
Hamilton Insurance Group presently has a consensus target price of $22.60, suggesting a potential upside of 20.99%. CNA Financial has a consensus target price of $51.50, suggesting a potential upside of 6.40%. Given Hamilton Insurance Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Hamilton Insurance Group is more favorable than CNA Financial.
Profitability
Net Margins | Return on Equity | Return on Assets | |
Hamilton Insurance Group | 21.88% | 21.92% | 6.70% |
CNA Financial | 9.26% | 13.30% | 2.04% |
Valuation & Earnings
This table compares Hamilton Insurance Group and CNA Financial”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Hamilton Insurance Group | $2.30 billion | 0.82 | $258.73 million | $4.47 | 4.18 |
CNA Financial | $13.83 billion | 0.95 | $1.21 billion | $4.80 | 10.08 |
CNA Financial has higher revenue and earnings than Hamilton Insurance Group. Hamilton Insurance Group is trading at a lower price-to-earnings ratio than CNA Financial, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
29.2% of Hamilton Insurance Group shares are held by institutional investors. Comparatively, 98.4% of CNA Financial shares are held by institutional investors. 2.7% of Hamilton Insurance Group shares are held by insiders. Comparatively, 0.3% of CNA Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Hamilton Insurance Group beats CNA Financial on 7 of the 13 factors compared between the two stocks.
About Hamilton Insurance Group
Hamilton Insurance Group, Ltd., through its subsidiaries, provides underwriting specialty insurance and reinsurance risks in Bermuda and internationally. The company operates Hamilton Global Specialty, Hamilton Select, and Hamilton Re underwriting platforms. The company offers casualty reinsurance products, such as commercial motor, general liability, healthcare, multiline, personal motor, professional liability, umbrella and excess casualty, and worker's compensation and employer's liability reinsurance; property reinsurance and insurance; and specialty reinsurance solutions, including accident and health, aviation and space, crisis management, mortgage, financial lines, marine and energy, and multiline specialty. In addition, it offers accident and health, cyber, energy, environmental, financial lines, fine art and specie, kidnap and ransom, mergers and acquisitions, marine and energy liability, political risk and violence, professional liability, property binders, property direct and facultative, professional lines, space, upstream energy, excess casualty, war and terrorism, allied medical, management liability, medical professionals, general liability, products liability and contractors, and small business casualty insurance plans, as well as surety and treaty reinsurance products. The company was incorporated in 2013 and is headquartered in Pembroke, Bermuda.
About CNA Financial
CNA Financial Corporation provides commercial property and casualty insurance products in the United States and internationally. It operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments. The company offers professional liability coverages and risk management services to various professional firms, including architects, real estate agents, and accounting and law firms; directors and officers, employment practices, fiduciary, and fidelity and cyber coverages to small and mid-size firms, public and privately held firms, and not-for-profit organizations; professional and general liability, as well as associated casualty coverages for healthcare industry; surety and fidelity bonds; and warranty and alternative risks products. It also provides property, marine, boiler, and machinery coverage insurance products; casualty insurance products comprising workers' compensation, general and product liability, commercial auto, umbrella, and excess and surplus coverages; specialized loss-sensitive insurance programs and total risk management services; and run-off long term care policies. The company was founded in 1853 and is based in Chicago, Illinois. CNA Financial Corporation operates as a subsidiary of Loews Corporation.
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